Fred and Ida have discovered that if they get divorced in December of this year, file as single taxpayers, and then remarry in the following year, the arrangement would result in significant tax savings. Is this a permissible tax planning strategy?

Note: you are expected to complete this project using current, post-CARES Act law. In other words, apply “new” law to the fact patterns below. To the extent your conclusion is contingent on an unknown fact, you should discuss possible outcomes for different assumptions.

In general, the memos should document the analysis you performed and conclusions of your research. More specifically, the memos should reflect the following about each client’s inquiry:
 Relevant facts
 Issues (questions) identified from the facts
 Applicable primary authority (importantly, IRS Publications may not be your only source for any particular client inquiry)  Conclusions and recommendations reached as a consequence of your research
 Analysis performed (i.e., how the primary authority cited above addresses the issues)

Uncollectible Accounts—Percentage of Sales and Percentage of Receivables

At the end of the current year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $344,120. Credit sales are $2,658,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:

1. Allowance for Doubtful Accounts has a credit balance of $1,985.

a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $23,690 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

2. Allowance for Doubtful Accounts has a debit balance of $1,160.

a. The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales. If an amount box does not require an entry, leave it blank.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $22,330 in uncollectible accounts. If an amount box does not require an entry, leave it blank.

The following are the income statement and balance sheet of company X as at year 2015.

Income Statement

Sales

20,077,000

Cost of goods sold

14,985,000

Other Expenses

2,399,000

Depreciation

655,000

EBIT

2,038,000

Interest

362,000

Taxable income

1,676,000

Tax (40%)

670,400

Net income

1,006,600

Balance Sheet

Assets

Liability and Equity

Current Assets

Current liabilities

Cash

365,040 Account payable

715,680

Account Receivable

1,534,680 Notes payable

1,446,400

Inventory

1,238,500 Total current liabilities

2,162,080

Total current assets

3,138,220

Fixed Assets

Long-term debt

3,825,000

Net plant and equipment

12,315,680 Shareholder equity

Common stock

150,000

Retained earnings

9,316,820

Total equity

9,466,820

Total assets

15,453,900 Total liability and equity

15,453,900

Please calculate the following ratio:

a. Gross margin ratio

b. Quick ratio

c. Debt to Asset ratio

A project will produce an operating cash flow of $15,200 a year for four years. The initial cash investment in the project will be $50,000. The net after-tax salvage value is estimated at $4,000 and will be received during the last year of the project’s life. What is the internal rate of return for this project? Should the project be accepted if the cost of capital is 10%?

Group of answer choices

8.31%; No, project should be rejected

10.81%; Yes, project should be accepted

8.31%; Yes, project should be accepted

10.81%; No, project should be rejected

10.25%; Yes, project should be accepted

A project will produce an operating cash flow of $91,500 a year for three years. The initial cash outlay for

equipment will be $188,000. The net aftertax salvage value of $17,000 will be received at the end of the

project. The project requires $52,000 of net working capital up front that will be fully recovered. What is the

net present value of the project if the required rate of return is 14 percent?

A. $22,318.76 B. $19,002.37 C. $15,450.93 D. $24,670.39 E. $17,488.70

Prepare the cash flow statement for the company for the year 2018 (start with NPAT) and write down your answer for each section. (Do not show the full format, just write down the balance for each section.) (Depreciation Expense for the year 2018 is 500,000 USD)

1. Cash flow from operations: ?
2. Cash flow from investments:?
3. Cash flow from financing:?
4. Cash Surplus (Deficit) :?

Sterling Steel Inc. purchased a new stamping machine at the beginning of the year at a cost of $720,000. The estimated residual value was $76,800. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 268,000 units. Actual annual production was as follows: Year Units 1 78,000 2 66,000 3 30,000 4 58,000 5 36,000 Complete a separate depreciation schedule for each of the alternative methods. (Round your answers to the nearest dollar amount. Do not round your intermediate calculations. Omit the "$" sign in your response.) Straight-line. Units-of-production. . Double-declining-balance.

The E.N.D. partnership has the following capital balances as of the end of the current year:

Answer each of the following independent questions:

Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $285,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $365,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

Reproduced below are selected financial data at the end of Year 6 and forecasts for the end of Year 7 for AlMasa Company:

Additional forecast estimates for Year 7:

Sales                                       $495,000                  Net Income              $12,000                   

Cost of sales                         55% of sales forecast        Days’ sales in receivables 60 days

Required:

Assuming all expenses are paid in cash when incurred and that cost of sales is exclusive of depreciation, forecast the ending cash balance for year 7. If AlMasa Company wishes to maintain a minimum cash balance of $60,000, must the company borrow?   

Case Study A 43 year old Male patient is brought to the OR for a total hip arthroplasty. His chart shows that he HIV+; he is in the early stages of Aids. He has kaposi's sarcoma skin lesions, painfully swollen lymph nodes in the groin and axilla, and is underweight.

                           Question
1. what important principles should you consider while positioning the patient to protect him from pain and injury?

2. what are some special considerations concerning an AIDS patient when placing the ESU grounding pad?

3. what complications could be encountered during the case that the CST should be prepared to assist the OR team in resolving?

4. Discuss the concept of standard precautions. Do you treat this patient any differently because he is HIV+?